Qwest Sqwelches Rumors

HOOFDDORP, Netherlands -- KPNQwest (Nasdaq: KQIP, ASE: KQIP), the leading pan-European data communications and hosting company, today issued the following statement regarding rumours of a possible sale by KPN Telecom of its stake in KPNQwest: Under the KPNQwest Joint Venture and Shareholders Agreement, until April 1, 2004, KPN Telecom may not transfer its KPNQwest shares to any person (other than an affiliate) without Qwest's consent. After April 1, 2004, KPN Telecom may sell its KPNQwest shares to any person, subject to Qwest's right of first offer. Qwest is subject to similar restrictions. Transfers of shares in violation of these restrictions constitute a breach of the agreement.KPNQwest NV